5 Things You Should Know Before Becoming a UK Landlord
Are you considering becoming a landlord? Before you dive into the world of real estate rentals, there are a few key things you should know. From legal responsibilities to financial considerations, being a landlord comes with its fair share of challenges and rewards.
In this article, we will outline the top five things you should know before taking on the role of a landlord.
Understanding the responsibilities of a landlord
Being a landlord comes with a range of legal and financial responsibilities that you must be prepared to handle. One of the most fundamental responsibilities is ensuring that your rental property complies with all relevant housing and safety regulations.
This includes maintaining the property in a habitable condition, providing working utilities, and addressing any health and safety concerns promptly.
Tenant rights
Tenants have the right to:
live in a property that’s safe and in a good state of repair
have your deposit returned when the tenancy ends - and in some circumstances have your deposit protected
challenge excessively high charges
know who your landlord is
live in the property undisturbed
see an Energy Performance Certificate for the property
be protected from unfair eviction and unfair rent
have a written agreement if you have a fixed-term tenancy of more than 3 years
Landlord responsibilities
You’re a landlord if you rent out your property. As a landlord you must:
keep your rented properties safe and free from health hazards
make sure all gas equipment and electrical equipment is safely installed and maintained
provide an Energy Performance Certificate for the property
protect your tenant’s deposit in a government-approved scheme
check your tenant has the right to rent your property if it’s in England
give your tenant a copy of the How to rent checklist when they start renting from you (you can email it to them)
Maintaining the rental property
Maintaining your rental property is a crucial aspect of being a landlord. This includes:
Regular inspections,
Addressing maintenance and repair issues in a timely manner
Ensuring that the property is kept in a clean and safe condition.
Failure to maintain the property can not only lead to tenant dissatisfaction but also potential legal issues.
Budgeting for maintenance
One of the key responsibilities in maintaining the rental property is budgeting for and addressing both routine and unexpected repairs.
This may include everything from fixing a leaky faucet to replacing a malfunctioning appliance. Having a well-planned maintenance schedule and a reserve fund for unexpected expenses can help you stay on top of these issues and avoid costly surprises.
You should be allocating 10% of the property rental towards maintenance as a rule of thumb.
Fire safety
It’s your responsibility to:
fit and test smoke alarms and carbon monoxide alarms
follow fire safety regulations for property in a purpose-built block of flats or for houses and property adapted into flats
Health and safety inspections
The Housing Health and Safety Rating System (HHSRS) is used by your council to make sure that properties in its area are safe for the people who live there. This involves inspecting your property for possible hazards, such as uneven stairs.
If you own a property and rent it out, the council may decide to do an HHSRS inspection because:
your tenants have asked for an inspection
the council has done a survey of local properties and thinks your property might be hazardous
HHSRS hazard ratings
Inspectors look at 29 health and safety areas and score each hazard they find as category 1 or 2, according to its seriousness.
You must take action on enforcement notices from your council. You also have the right to appeal enforcement notices.
The council can do any of the following if they find a serious hazard:
issue an improvement notice
fix the hazard themselves and bill you for the cost
stop you or anyone else from using part or all of the property
EICR
You will need to keep an updated EICR certificate to rent out your property, this is normally valid for 5 years.
Gas safety
You will need to keep an updated gas afety certificate to rent out your property, this is normally valid for 1 year.
Eviction procedures and legal recourse
Procedures for different types of tenancy
The exact procedure will depend on the tenancy agreement and its terms.
Assured shorthold tenancies
The 2 types of assured shorthold tenancies are:
‘periodic’ tenancies - these run week by week or month by month with no fixed end date
fixed-term tenancies - these run for a set amount of time
You must follow a set process if your tenants have an assured shorthold tenancy.
Give your tenants a Section 21 notice if you want the property back after a fixed term ends. Give them a Section 8 notice if they’ve broken the terms of the tenancy. Find out how to give Section 21 and Section 8 notices.
Apply to the court for a standard possession order if your tenants do not leave by the date specified on the notice and they owe you rent. You can apply for an accelerated possession order if you’re not claiming any unpaid rent.
Apply for a warrant for possession if your tenants still will not leave - this means bailiffs can remove the tenants from your property.
We have a blog for evicting tenants you can read about it here.
Pro's & Cons of being a UK Landlord
Becoming a landlord in the UK can be a lucrative investment opportunity, but it also comes with its fair share of challenges. Understanding the pros and cons of being a UK landlord can help you make an informed decision about whether this path is right for you.
Pro’s
Steady Income
One of the primary advantages of being a UK landlord is the potential for steady rental income.
With a growing demand for rental properties, landlords can often charge competitive rates and enjoy a reliable stream of passive income.
Capital growth
Additionally, the UK's property market has generally experienced long-term appreciation, providing landlords with the opportunity to build wealth through their rental investments.
Con’s
Responsibility
However, being a UK landlord also comes with significant responsibilities and potential risks.
Landlords must navigate a complex web of regulations, including:
tenant rights.
property maintenance requirements.
tax obligations.
Void periods
Problem tenants
Government rule changes
Time consuming
Moreover, managing a rental property can be time-consuming and require a significant investment of resources.
Landlords must be prepared to handle tenant inquiries, coordinate repairs and maintenance, and navigate the eviction process if necessary. This can be particularly challenging for those who are not based in the UK or who have multiple properties to oversee.
Avoid the Hassle of Private Lettings with Guaranteed Rent
There’s a lot to learn about being a landlord, and it’s not for everyone. Fortunately, there is a way of renting out a property without all the stress and financial risk. At Stayful we specialise in guaranteed rent – offering landlords a secure, risk-free income with none of the hassle.
We’ll professionally let and manage your property for up to 5 years while you receive a fixed rental income. Your rent is guaranteed every month, even during void periods. What’s more, we’ll even handle the cleaning and maintenance for you. To find out how much your property could be worth, today get in touch and we can have a chat!